Co-living developments are gaining momentum in London, offering a modern solution to the capital’s housing challenges, according to new research findings by planning consultancy Lichfields. 

The report highlights the sector’s ongoing growth and benefits while calling for greater policy support to ensure its long-term success.

Whilst only 25% of London boroughs have adopted or are developing planning policies which explicitly support co-living, the sector is reported to be thriving. 

Of 34 large-scale co-living planning applications submitted in London to date, nearly 70% [24] have been approved. These schemes cater to a wide range of people, including young professionals, seeking high-quality, affordable and community-focused living spaces with developments typically featuring private rooms of 20 square metres and generous shared amenities averaging 5.5 square metres per unit.

Lichfields says that with traditional housing delivery faltering and planning applications for residential schemes in decline, co-living is emerging as a resilient alternative and one which can deliver considerable local benefits including affordable housing.

Adam Donovan, planning director at Lichfields, says: “Co-living represents a fresh approach to urban living, offering high-quality, flexible housing that meets the needs of Londoners today. It’s a way for local authorities and the Greater London Authority (GLA) to meet housing targets and address the broader housing crisis. However, misconceptions still cloud the sector’s reputation. 

“Co-living is not a stopgap solution – it’s a forward-thinking, community-focused lifestyle that deserves its place in London’s housing mix.”

Despite its progress, co-living faces barriers and it is often misunderstood, claims the consultancy. 

The findings emphasise the need for a collaborative approach between developers, policymakers and communities to ensure co-living becomes a fully integrated part of London’s housing strategy.

Donovan continues: “The sector is still embryonic and many stakeholders – councillors, planning authorities and communities – don’t fully understand how it works or the benefits. Too often, co-living is mistakenly lumped in with HMOs or short-term lets, but it’s anything but. These are thoughtfully designed spaces that foster community while providing private, high-quality living arrangements.”

The research stresses the importance of demystifying co-living to ensure its success. Educating decision-makers about the design, quality and community benefits of these schemes is critical to addressing misconceptions and unlocking the sector’s potential. By addressing policy inconsistencies and dispelling myths, the sector can continue to grow and contribute meaningfully to London’s housing landscape.

Donovan adds: “The conversation about co-living needs to shift – from debate to action. It’s time to embrace this innovative housing model and integrate it into the solutions for London’s housing crisis.”

To learn more about how co-living can shape the future of London’s housing, read the full report here.